How?

 

It's due to the gross weight of the Touareg and its use as a business vehicle.

I'll look for the detailed info and post it here.

 

Current tax laws provide very favorable treatment (full write-off of entire cost in current year) for business purchasers of SUVs with Gross Vehicle Weights greater than 6000 lbs. In contrast, only about the first $20,000 of the price of cars and lighter SUVs may be written off, and that only over 5 years.

Here is an article at edmunds.com:
http://www.edmunds.com/advice/speci...alreports/articles/100280/article.html?tid=edmunds.n.mainindex.advice.special.2

2003 Tax Changes: Business Taxpayers

FS-2004-2, January 2004

Depreciation and Section 179 Expensing

The limit on the section 179 expense deduction increased to $100,000. This limit is reduced by the amount by which the cost of section 179 property placed in service during the year exceeds $400,000, double last year’s threshold. Off-the-shelf computer software is now eligible for this deduction. These changes apply to taxable years beginning after 2002 and before 2006. Taxpayers have an option as to whether or not to claim this deduction.
The bonus depreciation rate for new property rose from 30% to 50% for property acquired and placed in service after May 5, 2003, and generally before Jan. 1, 2005. The higher rate does not apply to property acquired under a binding contract in effect before May 6, 2003. Taxpayers may elect out of bonus depreciation entirely, or elect to use the 30% rate instead of 50%, by attaching an election statement to their return.
Automobile Expenses

The first-year depreciation limit for vehicles is:
Automobiles Trucks & Vans
Basic: $3,060 $3,360
*30% bonus property acquired
before May 6, 2003: $7,660 $7,960
*30% and 50% bonus property
acquired after May 5, 2003: $10,710 $11,010
*The basic limit applies if the taxpayer elects out of both 30% and 50% bonus depreciation.

 

Hello, i'm sorry about this question... I don't know anything about Taxes.

I don't own a business but I use my Touareg to drive to work everyday, can I get any deduction??

Thanks

 

I'm not CPA, but I think it's for business owners only?

 

Good article on the subject:

http://www.edmunds.com/advice/specialreports/articles/100280/article.html

In short, you have to use the car at least 50% of the time for business, and it has to be a business activity that the car is used for. So, for example, comuting from home to your office is NOT an example of of business use. Also, if you are really using the car for business, you may find that depreciating the car over time nets you a better tax break.

 

According to my friend's accountant, not only does it have to be for business purposes (as described in the previously linked articles), but the business has to be an S-Corp entity. He also indicated that you are much more likely to be audited if you use this heavy vehicle tax loophole.